Many companies will face the question of whether to outsource SEO (search engine optimization) or to hire in-house SEO professionals to improve, manage, and monitor search engine optimization and other Internet marketing efforts. Of course, some companies will overlook the need for search engine optimization, branding, and online reputation management altogether, but don’t worry about them. They will not likely steal away any of your market share, so whichever of these options works best for your company, it is better than overlooking the question.
I have witnessed many arguments on each side of this topic, but most do not give fair and unbiased consideration to each viewpoint. I intend for this to be useful to companies seeking to hire SEO services, freelance and agency search engine optimizers, and in-house SEO who may not be getting what they are worth. My goal is to remain as objective as possible and to discuss something of a potential trend in the online marketing industry.
First Consideration: Who Needs SEO, and How Much?
I want to address one very important consideration right upfront, and that is the question of “who needs search engine optimization?” I do not want to carry on with this part too long, because it should be obvious, and otherwise you would probably not be reading this. There is scarcely a company in existence that will not benefit from proper search engine optimization and Internet marketing. The benefits are measurable, and the factual data proves the importance. A challenging part of the question is in how the SEO efforts you put forth will most greatly increase the bottom line of your company. You would probably not pay a sales representative more money than they return for the company, and SEO is not so different in this respect. You should expect more profit.
In an unbiased fashion, I want to make it really clear that success mostly depends on the skill level implemented and dedication to the campaign. Even very small companies can benefit from either a full-time in-house SEO (search engine optimizer) or outsourced SEO if it is a skilled effort with the company’s interests at task. Believe me or don’t, but the real numbers bear it out that a well executed long-term online marketing campaign has the potential to make nearly any size or type of company very successful. The list of case studies and stories of success is longer than you will ever be able to read, because the list grows each day. I have witnessed it in my own corporation, and we turned a tiny company into a phenomenal multi-million dollar industry success. Proper online marketing should not be viewed as wasted cost, but rather as an investment. It is a very important investment which should not be taken lightly, because the list of failures grows even faster than the list of successes.
Why This SEO View is Unbiased
I have a sincere cause to pose questions about outsourcing SEO vs. hiring in-house SEO and base it on minimal bias. First, I will explain why my comparison is unbiased, and I hope you can see that it is provided for maximum value and not serving the agenda of one side over the other.
I have been a company president and/or CEO for a long time (over 20 years), and not just a CEO. For over a decade, I have been the CEO of a successful Internet company which offers SEO services. I look at this from the perspective of a corporate executive who seeks SEO talent, and also as somebody who has regularly been approached by “headhunters” seeking to bring me into their in-house staff. I was approached recently, and it was enticing enough to really make me consider the two sides of this topic and try to weigh them carefully.
I want to address the topic of hiring internal SEO versus outsourcing freelance or agency SEO consultants in a way that is as cost-aware and benefit-aware as I can determine from my viewpoint. I would also appreciate any input you may provide on the topic, because although I may wish to know everything, I still need people to help me prove it.
I will focus on eight segments plus a summary, and address the company needs and the employee or outsourced search engine optimizer (SEO) independently because I want to make a purposeful case for each. This format should help me to make these high-level pros and cons of each option as unbiased as possible. I will not touch on every point, because this could get very long, but I will address some of the top advantages and disadvantages. My arguments for and against outsourced SEO or in-house SEO will be categorized as follows:
- Outsource SEO: Advantage to Company
- Outsource SEO: Disadvantage to Company
- In-House SEO: Advantage to Company
- In-House SEO: Disadvantage to Company
- Outsource SEO: Advantage to SEO
- Outsource SEO: Disadvantage to SEO
- In-House SEO: Advantage to SEO
- In-House SEO: Disadvantage to SEO
- Summary
So let’s begin to look at this from the standpoint of a company who wants to be more visible in the Internet marketplace, with a more effective message, increased profits … and to do this with the highest effectiveness and the least amount of failure.
Outsource SEO: Advantage to Company
The most advantageous aspect of outsourcing SEO is not what most people may think. It is not a way to save money, because let’s face it, the outsourced SEO has to eat just as much as an in-house SEO. The good ones eat much better. In fact, the expense to outsource comparable results is generally significantly higher than in-house SEO. I see what in-house SEO people are paid by many companies and I wonder how they can do it for more than a couple months without seeking a different field. Then I remember that the lower pay scale usually equates to experience, regardless of the level of talent. Fair or not, that is often the way it is. The underpaid SEO with significant talent should always be seeking more opportunity, because they deserve it. You cannot expect them to earn success for a company without enjoying some success of their own. It just doesn’t work that way.
The greater advantage of outsourcing is that companies can pull from a greater talent base of people who are more highly specialized in the field of marketing and SEO. They are often people who were previously in-house SEO and developed enough talent to fire their boss and go freelance or with an agency. With greater specialization, experience, and overall industry skill, it should be no surprise that the cost is higher (although it actually is a surprise to some). More skill equals more cost … just like it should be. When hunting success, it is best to seek success where it lives. If the SEO has a success record, they are not likely to put themselves in the pool of eligible employees to work for small earnings and punch a time clock. The real benefit here is in the selection, and being able to purchase talent that a company cannot otherwise afford. They may even be able to afford it, but they lack the means to justify SEO to other decision makers.
Another advantage to companies by outsourcing is the typically obvious concerns surrounding human resources issues (payroll, benefits, liability, and etcetera). However, it is quite clear from everything I have read and witnessed that those considerations, especially where they relate to a scale of cost for talent still leave the company with a higher expenditure for outsourcing SEO … but also a higher return on their investment.
Outsource SEO: Disadvantage to Company
Aside from the common disadvantage of budgetary concerns and how very hard it is to free up necessary marketing capital, the company has less perceived control. Much is perception rather than reality, but there is some basis to this. For a marketing director or business owner with a need for immediate action and accountability, an in-house SEO is an easier neck to strangle when something is urgent or if goals are falling short. Most outsourced SEO, if vetted properly and found to be reputable, will care very much to serve their clients. However, they also have their own company interests to address. In instances where resources are pooled and the top-level resources are shifted to another project or otherwise short-handed, a client may not have the level of immediate recourse they like, as they may have with an employee. This often comes down to the level of client you have placed yourself as, and if another client is more profitable and needs urgent attention, it should be no surprise how business decisions are made.
In-House SEO: Advantage to Company
I have not been an employee in decades. I have always been the employer, so I can see the advantages of outsourcing SEO from the company standpoint. A commonly perceived advantage to the company focuses on greater control over the SEO and their marketing message.
This is generally more a myth than reality, but many companies will see an employment contract as more enforceable than an independent contractor agreement. The greater control is not in the enforceability but rather the requirements. If somebody is your employee, you can require them to be in a specific place at a specific time. This can make it easier for some companies to feel relatively secure that their SEO is working a specific amount of hours per day, and help to assure that they are working hard on the company’s projects. To my notion, the most valued benefit of in-house SEO to the company is far more human in nature, and it includes pride in a job done well.
The greatest benefit of in-house SEO to a company will really rely on a much more human aspect of business. If employees are happy with their job and they have a passion for making the company successful, many other obstacles are averted. When they can share in a feeling of pride, their effectiveness is likely to reflect that pride. I saw this most profoundly when I was recently contacted to meet with a company in Chicago. I felt a real connection with the company objectives and I can say for certain that I would accept a much smaller contract with that company than I would accept from other companies which have reached out to me. This is not to say that I would work for any company without dramatically stretching out their SEO budget. What I can say is that the right company could offer me $100,000 lower salary than the wrong one and still capture much more of my interest. I know, some people will think it is crazy that I would take $100,000 less to do something I love and work with people I enjoy. This is far less than the huge number of prospective clients I turn away each year because I would rather choke them than make them successful. Oh yes, SEO with a heart and soul … that must seem silly, right? Having a passion for something always makes a difference in success. Overlooking or doubting this fact is a huge mistake! If you doubt it, read this article: “Where Does Marketing Talent Come From and What is the Cost?”
In-House SEO: Disadvantage to Company
The biggest disadvantage that I can see to a company with in-house SEO is if the well eventually runs dry. Creativity can diminish over time if the in-house SEO does not discover new challenges to meet. This can be assisted with maintaining good relationships and keeping open communication with others in the SEO field, but it is often well-augmented by an outside consultant. For companies unwilling or unprepared to provide their SEO staff with the necessary resources, they can often find a dead-end of sorts. It is mitigated by finding the best SEO for the job, but on limited budgets, companies are frequently required to settle for what they can afford. That can mean having an in-house SEO that is a shallower well, and that well may require a refill from time to time. The tragic disadvantage to many companies is that rather than to bring in additional inspiration, they will assume that their in-house SEO has just run out of value. This is often not the case, but rather that they have just not been granted enough resource. Hiring replacement talent is a tragic end to this scenario, which can set a company back a lot of time and money. I guess the disadvantage here is how to properly discover and provide the degree of trust and artistic freedom which will benefit their SEO staff and the company at the optimal level.
Outsource SEO: Advantage to SEO
This should be no surprise that the biggest gain to the outsourced SEO is financial. Although there are a lot of starving people calling themselves search engine optimizers, the big reward comes in the form of money. Most freelance SEO will have multiple business interests, and have multiple income streams. A good SEO knows how to be more visible with a better marketing message. They do not reserve this only for their clients. I like the way Rand Fishkin of SEOmoz described why good SEO is expensive as relating to the cost of the search engine optimizer’s lost opportunities elsewhere. I have said this before, and it is very true that if I spend more of my time working on clients’ projects, it means less time I am spending on my own.
Outsource SEO: Disadvantage to SEO
I described what I see as the greatest disadvantage of being an outsourced SEO in a recent article, and I think this sums it up pretty well. The article is titled “When I Go to Hell, They Will Have Me Selling SEO” and it discusses the challenges we face from people simply not understanding that there is a huge difference between good and bad SEO. When people see marketing as a commodity, it is hard to help them, even when you have factual data to make a good case.
I see a potential shift in corporate thinking about SEO as the market is flooded by bad SEO. The cream rises to the top, and the best SEO are in even higher demand. Before that happens, a lot of people are hurt by the fringe of the SEO industry bastardizing the market and causing confusion among companies in need of the service. This makes it more acceptable than ever for the higher level SEO to consider leaving the rat race and doing what they love on behalf of an employer. Battling for scraps in a market that people strongly want to believe is a commodity and can be bought cheap is not appealing to me in the least. As that trend continues, search engine optimizers who really do know their work and can achieve results have every reason to be frustrated. Good SEO can compete just fine, but there is a point when it is just not fun to explain something to people only to have them learn it the hard way by hiring a cheap SEO and then come back to repair the mess it caused them.
In-House SEO: Advantage to SEO
I think most good search engine optimizers love their work. That is what makes them good at it. An advantage to the in-house SEO which also benefits the company is that they get to do the job they love and develop a full-scale marketing effort rather than the bits and pieces that many clients will opt for. Instead of working on projects that are shaved down by clients trying to save money, the SEO can do more of the work they know works. It allows for a better focus on both long-term and short-term objectives. Any SEO should love that.
In-House SEO: Disadvantage to SEO
An obvious downside to working in-house is that companies often only budget for low-level SEO positions. Yes, the money is a big disadvantage, but there is one thing perhaps even worse. A battle for many in-house search engine optimizers is that they receive friction from multiple departments. This can happen to the outsourced SEO as well, but the in-house employee is often caught in the middle. SEO involves marketing, information technology, and other departments who often do not see eye-to-eye. Depending on the company’s receptiveness and understood importance of online marketing, it can require extreme patience.
If a company wants the best from their online marketing efforts, they must listen to the SEO and be open to good ideas. When this is not the case, the SEO may have to take on a role which is not just SEO, but also office politician. Such is the life of the underrepresented in-house SEO.
Summary of Outsourced or In-House SEO
In summary, I must say that the worst answer is to look away and ignore the importance of the role of SEO in any company. In many instances, it is most logical and effective to make use of both outsourced and in-house SEO as a united effort.
I believe that as online competition for business increases among hiring companies, the importance of the in-house SEO will cause companies to increase their budgets and bring in higher level SEO talent to achieve their goals. This will provide opportunities for independent SEO, agencies, and employment alike.
For the freelance SEO, I see a continued battle of smaller and “uninitiated” companies viewing SEO as a commodity. This is a common challenge. With more people offering ineffective services it is not likely to fade soon, but it will. Companies who want to remain competitive will see greater value for highly skilled professional SEO in both capacities.
The most pronounced trend I see coming is that high-quality SEO has an ever-increasing demand, including all areas of the field. Filtering out the good and the bad SEO has become more challenging for many companies, but when they find good marketing talent, I expect them to take it more seriously than ever.
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